What is the value of an at the money call option
Question: AKX stock is currently trading at $50 today and in one period will either be worth 20% more or 20% less. The risk-free rate is 4%. What is the value of an at the money call option?
A. $5.77
B. $6.00
C. $6.67
D. $10.00
E. $20.00
Now Priced at $20 (50% Discount)
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The risk-free rate is 4%. What is the value of an at the money call option?
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